American scholars release research report: Over the span of 4 years, the glob...

Kabir903

The report was jointly completed by finance professor John Griffin and graduate student Kevin May from the University of Texas at Austin. They collected cryptocurrency addresses from over 4,000 fraud victims, tracked the flow of funds from victims to scammers, and found that these scam networks transferred over $75 billion to cryptocurrency exchanges between January 2020 and February 2024.

According to the report, $15 billion of these funds came from five exchanges, including Coinbase, the largest cryptocurrency exchange in the United States. These are exchanges typically used by victims in Western countries.
The report notes that once scammers raise funds, they usually convert them into Tether (USDT), a popular stablecoin pegged to the value of the US dollar. Eighty-four percent of the trading volume in addresses associated with criminals is conducted in Tether. Professor Griffin stated, "These are large organized crime networks, and their operations are basically unhindered."

Ponzi schemes often begin with "mis-sent messages," where responders are subsequently lured into false cryptocurrency investments. Once victims invest enough funds, scammers disappear. Despite the seemingly outrageous methods, the damage caused is significant, with some victims losing hundreds of thousands or even millions of dollars.

The report reveals the significant role of cryptocurrency in criminal activities and the challenges regulators face in combating such crimes. Professor Griffin stated, "In the past, transferring this much cash through the financial system was very difficult. However, criminals can now use cryptocurrency for anonymous and cross-border transactions, making tracking and enforcement more difficult."

Professor Griffin believes that Tether has become the "preferred currency of criminal networks." In opposition, Tether Limited CEO Paolo Ardoino called the research report "false and misleading." "Using Tether, every operation is online, every operation is traceable, every asset can be seized, and every criminal can be caught. We cooperate with law enforcement agencies to achieve this."

Blockchain analysis firm Chainalysis Inc. stated that the amounts in the report may be overstated because receiving some funds from a Ponzi scheme does not necessarily mean that all funds received by an address come from fraud. "Given the limited reporting, quantifying the funds obtained through Ponzi schemes is challenging."

Kahn332

Scammers are definitely rampant now.

Pooja193

USDT is a cryptocurrency, right? I often hear about it.

Nimmi373

Almost every company has USDT.

Jatin255

The amount is really huge.